Recent on-chain data reveals that Ethereum’s supply is becoming increasingly concentrated, with a significant portion now controlled by the largest wallet holders. The “Supply Distribution” metric, which categorizes wallets based on the number of ETH held, highlights this growing trend.
Wallet groups are divided into three major cohorts for analysis: retail investors holding 0-100 ETH, mid-tier holders or “sharks” and “whales” with 100-100,000 ETH, and the mega whales who own over 100,000 ETH. While retail investors hold relatively minor amounts and have minimal impact on price movements, the mid-tier group represents larger investors with growing influence. However, the spotlight now shifts to the mega whales, entities holding vast amounts of Ethereum, sometimes exceeding $400 million at current market rates.
Over the past decade, the dominance of mega whales has reached new heights. Data indicates that just 104 wallets now control 57.35% of the total ETH supply, marking an all-time high. In contrast, holdings among sharks and whales have declined to 33.46%, their lowest point on record. While supply centralization often raises concerns about market manipulation, Ethereum’s Proof-of-Stake (PoS) consensus mechanism adds another layer of complexity. Under PoS, entities holding 51% of the total supply could theoretically influence or control the network.
However, it’s essential to note that many of these mega whale wallets belong to staking pools, custodial platforms, and exchanges, where funds are collectively held for thousands of individual investors. As Ethereum continues to evolve, this concentration remains a critical point of interest for market participants monitoring both decentralization and network security.
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